Premium Bonds: Who Qualifies and What You Get
Learn how Premium Bonds work, including how to enter monthly prize draws and the risks regarding guaranteed returns.
Premium Bonds are a way to save money where your funds are entered into a monthly draw for a chance to win tax-free prizes.
Who it's for
You qualify if you are a resident of the United Kingdom and are aged 16 or older.
What you get
Instead of earning traditional interest on your savings, you get the opportunity to win prizes every month. These winnings are tax-free, meaning you do not pay tax on any prize money you receive.
What it costs you
There are no fees to participate. To start, you must make a minimum investment of £25.
The catch to know
While your initial investment is safe, this is not a standard savings account with a guaranteed return. You could win a prize, but you could also win nothing at all.
How to apply
- Visit the official website to check eligibility and terms.
- Decide how much of your money you want to invest.
- Complete the application process through the online portal.
- Manage your savings and check your prize status through your account.